Can private limited co. issue redeemable preference shares?
Can private limited co. issue redeemable preference shares?
NIKITA (CA FINAL, CS) (111 Points)
03 January 2013
2 Replies
Devendra
(Chartered Accountant)
(4775 Points)
Replied 03 January 2013
If the Articles of Association of the Pvt. Ltd. Co. permits the issue of Preference Shares, then the Pvt. Co. can easily issue the Preference Shares by following the prescribed procedure.
Happy New Year to you..!! :)
Regards,
Devendra Kulkarni
nayan
(article assistant)
(466 Points)
Replied 03 January 2013
i dont think so. private ltd co cannot accept any public deposit , then howcome they can issue reedemable preferance share? beside if dividend not paid for 3 years the preferance shareholders have voting rights, so logically i dont think private ltd would be able to issue preferance shares at any cost whatsoever.
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